US Light oil trading lower on latest US EIA oil stocks data

US Light oil price is currently trading in the $73 dollar range as the EIA released it’s latest data that US crude oil stocks grew by 2.4 million barrels in the week ending on February 5th, up from 2.3 million barrels the week before. Many analysts had expected a drop to 1.4 million barrels.

EIA Crude Oil Stock is a measure of change in crude oil storage and it’s released by the Energy Information Administration. This report indicates the oil demand and the price volatility. As the oil prices have an impact on worldwide economy, some volatility for the currencies, specially for the CAD is expected. We have to take into account that Canada is the world’s fourteenth largest producer of oil so a strong oil demand appreciates, or is bullish for the CAD.

The build in oil stocks was foreshadowed by industry data released earlier in the week by the American Petroleum Institute, which said that inventories rose a whopping 7.195 million barrels in the week ended February 5th. Oil prices have tumbled on Friday, with concerns about Chinese demand and a robust US dollar driving most commodities prices lower.

US Light crude oil futures for March delivery fell $2.03 to $73.25 a barrel by 1526 GMT (10:56 a.m. EST) on the NYMEX, while in London, Brent crude oil futures for April fell back $1.84 to $72.28 on the ICE Futures Exchange.

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